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SALO

Salona CotspinNSEI:SALONA Stock Report

Market Cap

₹1.0b

7D

-1.2%

1Y

265.9%

Updated

21 Oct, 2021

Data

Company Financials
SALONA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends2/6

SALONA Overview

Salona Cotspin Limited produces and sells cotton yarn, knitted fabrics, and garments in India.

Price History & Performance

Summary of all time highs, changes and price drops for Salona Cotspin
Historical stock prices
Current Share Price₹198.30
52 Week High₹49.20
52 Week Low₹250.00
Beta0.81
1 Month Change-0.28%
3 Month Change6.78%
1 Year Change265.87%
3 Year Change159.39%
5 Year Change396.37%
Change since IPO598.24%

Recent News & Updates

Jul 30
Should You Be Adding Salona Cotspin (NSE:SALONA) To Your Watchlist Today?

Should You Be Adding Salona Cotspin (NSE:SALONA) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jul 06
Here's Why Salona Cotspin (NSE:SALONA) Has A Meaningful Debt Burden

Here's Why Salona Cotspin (NSE:SALONA) Has A Meaningful Debt Burden

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

SALONAIN LuxuryIN Market
7D-1.2%-4.1%-2.4%
1Y265.9%99.3%62.6%

Return vs Industry: SALONA exceeded the Indian Luxury industry which returned 100.2% over the past year.

Return vs Market: SALONA exceeded the Indian Market which returned 63.7% over the past year.

Price Volatility

Is SALONA's price volatile compared to industry and market?
SALONA volatility
SALONA Beta0.81
Industry Beta0.72
Market Beta1

Stable Share Price: SALONA is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SALONA's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

FoundedEmployeesCEOWebsite
1994248Shyamlal Agarwalahttps://www.salonacotspin.com

Salona Cotspin Limited produces and sells cotton yarn, knitted fabrics, and garments in India. The company offers ring spin, open end, slub, hank, and compact cotton and blend yarn products. It also provides grey, dyed, and printed fabrics; and knitwear apparels.

Salona Cotspin Fundamentals Summary

How do Salona Cotspin's earnings and revenue compare to its market cap?
SALONA fundamental statistics
Market Cap₹1.03b
Earnings (TTM)₹107.20m
Revenue (TTM)₹3.47b

9.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SALONA income statement (TTM)
Revenue₹3.47b
Cost of Revenue₹2.83b
Gross Profit₹637.65m
Expenses₹530.46m
Earnings₹107.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)20.37
Gross Margin18.40%
Net Profit Margin3.09%
Debt/Equity Ratio188.0%

How did SALONA perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

5%

Payout Ratio

Valuation

Is Salona Cotspin undervalued compared to its fair value and its price relative to the market?

9.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SALONA (₹198.3) is trading above our estimate of fair value (₹10.34)

Significantly Below Fair Value: SALONA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SALONA is good value based on its PE Ratio (9.7x) compared to the Indian Luxury industry average (16x).

PE vs Market: SALONA is good value based on its PE Ratio (9.7x) compared to the Indian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SALONA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SALONA is overvalued based on its PB Ratio (2.7x) compared to the IN Luxury industry average (1.2x).


Future Growth

How is Salona Cotspin forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

37.4%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Salona Cotspin has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Salona Cotspin performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALONA has high quality earnings.

Growing Profit Margin: SALONA's current net profit margins (3.1%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: SALONA's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: SALONA's earnings growth over the past year (1800.7%) exceeds its 5-year average (16.6% per year).

Earnings vs Industry: SALONA earnings growth over the past year (1800.7%) exceeded the Luxury industry 73.8%.


Return on Equity

High ROE: Whilst SALONA's Return on Equity (28.2%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Salona Cotspin's financial position?


Financial Position Analysis

Short Term Liabilities: SALONA's short term assets (₹1.1B) exceed its short term liabilities (₹859.7M).

Long Term Liabilities: SALONA's short term assets (₹1.1B) exceed its long term liabilities (₹143.2M).


Debt to Equity History and Analysis

Debt Level: SALONA's debt to equity ratio (188%) is considered high.

Reducing Debt: SALONA's debt to equity ratio has increased from 129.9% to 188% over the past 5 years.

Debt Coverage: SALONA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SALONA's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

What is Salona Cotspin current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SALONA's dividend (0.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: SALONA's dividend (0.51%) is low compared to the top 25% of dividend payers in the Indian market (1.38%).


Stability and Growth of Payments

Stable Dividend: SALONA's dividend payments have been volatile in the past 10 years.

Growing Dividend: SALONA's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.9%), SALONA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average board tenure


CEO

Shyamlal Agarwala (76 yo)

no data

Tenure

₹3,975,348

Compensation

Mr. Shyamlal Agarwala serves as the Executive Chairman, Chief Executive Officer at Salona Cotspin Ltd and has been its Managing Director since April 1,2015. He has served as a Director at Salona Cotspin Li...


CEO Compensation Analysis

Compensation vs Market: Shyamlal's total compensation ($USD53.11K) is above average for companies of similar size in the Indian market ($USD38.82K).

Compensation vs Earnings: Shyamlal's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: SALONA's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Salona Cotspin Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Salona Cotspin Limited
  • Ticker: SALONA
  • Exchange: NSEI
  • Founded: 1994
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.035b
  • Shares outstanding: 5.26m
  • Website: https://www.salonacotspin.com

Number of Employees


Location

  • Salona Cotspin Limited
  • No. 9, Ramalinga Nagar
  • IV Cross Saibaba Colony
  • Coimbatore
  • Tamil Nadu
  • 641011
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:13
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.